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Loan vs Credit Card on Mortgage App
amillionlittlepieces
Posts: 96 Forumite
Hi Guys, wondering if anyone can help!!
I have a personal loan which I took out for a car, but I'm thinking about applying for a 0% credit card to save approx £1000 in interest.
Will it make any difference on a mortgage application which type of debt I carry in terms of personal loan vs credit card? Will be applying for a mortgage in about 6 months.
Cheers!!
I have a personal loan which I took out for a car, but I'm thinking about applying for a 0% credit card to save approx £1000 in interest.
Will it make any difference on a mortgage application which type of debt I carry in terms of personal loan vs credit card? Will be applying for a mortgage in about 6 months.
Cheers!!
LBM Jan 14 - Debt £30,500.48
January 2014 - 31st May 2016 DEBT FREE!!
Target Savings £500,000.00 Retire Early!!
Cash Savings £15,492.23
S&S ISA £60,560.54
January 2014 - 31st May 2016 DEBT FREE!!
Target Savings £500,000.00 Retire Early!!
Cash Savings £15,492.23
S&S ISA £60,560.54
0
Comments
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Save £1000 over how long? Have you consider the possible early repayment charge on the loan and balance transfer fee on the credit card?
It would be better to leave it in loan as when it comes to mortgage affordabilit, most lenders would take your monthly commitments to the loan so that it'd allow you to borrow more.
If you are applying for a mortgage soon, it would be wise NOT to apply for a credit card anyway.0
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